Cloud Access Security Broker Market Report Scope:

The Cloud Access Security Broker Market was valued at USD 9.68 billion in 2023 and is expected to reach USD 43.45 billion by 2032, growing at a CAGR of 18.20% from 2024-2032. The Cloud Access Security Broker market is witnessing remarkable growth as organizations increasingly adopt cloud-based services to enhance operational efficiency. In 2023, cloud leaders reported that 41.4% are increasing their use of cloud-based services, 33.4% are planning to migrate from legacy enterprise software to cloud-based tools, and 32.8% are migrating on-premises workloads to the cloud, according to Google Cloud. This shift toward the cloud has heightened concerns about data security, compliance, and visibility, creating a strong demand for solutions that can address these challenges. CASBs fill this critical gap by offering tools for access control, user activity monitoring, and policy enforcement, which are essential in mitigating risks. Furthermore, the surge in cyber threats and the introduction of stringent regulatory frameworks, such as GDPR and CCPA, have further reinforced the need for robust CASB solutions.

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This demand is amplified by the growing trend of remote and hybrid work environments, with 16% of companies already fully remote and 22 million employed adults in the US working 100% from home. These shifts have disrupted traditional security perimeters, making it crucial for businesses to secure sensitive data outside on-premises networks. As companies increasingly rely on SaaS applications and multi-cloud platforms, securing data in these environments has become a pressing priority. CASBs, with their ability to monitor cloud application usage, detect anomalies, and encrypt data, are becoming indispensable in addressing these vulnerabilities. Industries like banking, healthcare, and government, where compliance and data security are non-negotiable, are particularly driving this adoption, ensuring a steady expansion of the market.

The future of the CASB market is even more promising as technological advancements enable more sophisticated solutions. For example, Oracle announced the integration of generative AI in its Fusion Cloud Applications suite on March 14, 2024, aiming to boost productivity and decision-making in finance, supply chain, HR, and customer experience. The integration of AI and machine learning into CASBs enhances their ability to provide real-time threat detection and predictive analytics, making them more effective. These advancements align well with the rising adoption of Zero Trust security frameworks, which require dynamic and granular access control. As multi-cloud environments continue to grow in complexity, businesses are expected to rely even more on CASBs to ensure seamless yet secure operations, paving the way for sustained growth and innovation in the market.

MARKET DYNAMICS

DRIVERS

• Accelerating Cloud Migration Fuels Demand for Cloud Access Security Broker Solutions

As organizations increasingly transition to cloud environments, the need for robust security solutions grows. Businesses are leveraging cloud platforms for their scalability, cost-effectiveness, and ease of collaboration. However, this shift exposes them to potential security risks, such as data breaches, unauthorized access, and shadow IT. Cloud Access Security Brokers are pivotal in addressing these concerns, offering visibility, control, and protection over data stored and shared in the cloud. They enable enterprises to monitor and manage cloud usage, enforce security policies, and ensure compliance with regulations like GDPR, HIPAA, and others. As cloud adoption continues to rise across sectors, the role of CASBs in safeguarding sensitive information and mitigating threats becomes increasingly critical, driving their adoption in the market.

• Expanding Adoption of SaaS Applications Drives Demand for Advanced CASB Solutions

The rapid expansion of Software-as-a-Service applications across industries has significantly increased the demand for advanced security solutions. Organizations are relying on SaaS tools for enhanced productivity, collaboration, and flexibility, leading to a surge in cloud-based operations. However, this growth comes with challenges, including managing data security, ensuring compliance, and preventing unauthorized access to critical business information. Cloud Access Security Brokers address these challenges by providing organizations with comprehensive visibility and control over data in SaaS environments. They enable secure access, monitor application usage, and enforce granular security policies. As the SaaS landscape continues to grow, with new applications being adopted rapidly, the necessity for CASBs to safeguard sensitive data and mitigate potential risks is becoming a cornerstone of enterprise cloud strategies.

RESTRAINTS

• High Implementation Costs Limit Cloud Access Security Broker Adoption Among SMEs

The high cost of deploying Cloud Access Security Brokers, including integration and ongoing maintenance, is a major factor deterring small and medium-sized enterprises from adopting these solutions. The initial investment required for implementation can be substantial, especially when considering additional cloud service costs. For example, AWS EC2 instances start at USD 0.0116 per hour, and S3 storage costs USD 0.023 per GB per month, while Google Cloud's Compute Engine instances begin at USD 0.0106 per hour, with storage costs from USD 0.020 per GB per month. Many SMEs struggle to allocate resources for both the setup and continuous updates. Beyond the upfront costs, businesses also face expenses related to training staff and ensuring that the solution integrates seamlessly with existing IT infrastructures. These financial challenges make it difficult for SMEs to justify the expenditure, especially when considering the return on investment. As a result, many SMEs choose more affordable, less comprehensive security options, limiting CASB adoption and slowing market growth within this segment.

• Data Privacy and Security Concerns Delay CASB Adoption Among Enterprises

Many enterprises are hesitant to adopt Cloud Access Security Brokers due to concerns about data privacy and security when storing sensitive information on third-party platforms. With increasing regulations around data protection, such as GDPR and CCPA, organizations are cautious about sharing their proprietary or customer data with external vendors. There is a fear that placing sensitive information in the hands of a third party could lead to potential data breaches, unauthorized access, or non-compliance with stringent regulatory requirements. Additionally, businesses may worry about losing control over data once it is managed outside their internal systems. These privacy concerns can prevent organizations from fully embracing CASBs, slowing their adoption and limiting the market potential in certain sectors, particularly those dealing with highly sensitive data.

SEGMENT ANALYSIS

BY APPLICATION

The Software as a Service segment dominated the Cloud Access Security Broker market in 2023, accounting for approximately 53% of the revenue share. This dominance can be attributed to the widespread adoption of SaaS applications across industries, driven by the need for scalable, flexible, and cost-effective solutions. As organizations increasingly rely on SaaS tools for collaboration, productivity, and business operations, the demand for CASBs to secure data and ensure compliance with regulatory requirements has grown significantly.

The Platform as a Service segment is expected to grow at the fastest compound annual growth rate of 20.96% from 2024 to 2032. This rapid growth is fueled by the increasing demand for customizable cloud platforms that enable businesses to develop, run, and manage applications without the complexity of infrastructure management. As organizations embrace PaaS solutions for their agility and innovation, the need for robust security to safeguard sensitive data and manage access across diverse cloud environments is becoming a key driver for CASB adoption in this segment.

BY DEPLOYMENT

The Data Security segment led the Cloud Access Security Broker market in 2023, accounting for approximately 43% of the revenue share. This dominance is largely driven by the increasing need to protect sensitive data as organizations move to cloud environments. As businesses adopt cloud-based applications and store critical information online, securing data from breaches, unauthorized access, and cyberattacks has become a top priority, prompting widespread use of CASBs for enhanced data protection and compliance with industry regulations.

The Risk and Compliance Management segment is poised to grow at the fastest compound annual growth rate of 20.23% from 2024 to 2032. This growth is fueled by the rising complexity of regulatory landscapes and the need for organizations to mitigate risks in increasingly distributed cloud environments. With stricter data protection regulations and the growing need for compliance across multiple jurisdictions, businesses are turning to CASBs to automate and streamline their risk management and compliance processes, ensuring they meet ever-evolving industry standards.

By Enterprise Size

The Large Enterprises segment dominated the Cloud Access Security Broker market in 2023, capturing approximately 61% of the revenue share. This dominance is primarily due to the extensive reliance of large organizations on cloud-based services to manage vast amounts of data and streamline operations. With significant resources at their disposal, these enterprises are more equipped to invest in comprehensive security solutions, making data protection, regulatory compliance, and secure cloud adoption critical priorities.

The Small and Medium-sized Enterprises segment is expected to grow at the fastest compound annual growth rate of 19.53% from 2024 to 2032. This growth is driven by the increasing cloud adoption among SMEs, which seek cost-effective, scalable, and secure cloud services without compromising on data security. As these businesses expand their digital footprints, they are increasingly recognizing the need for CASBs to ensure secure cloud access, meet regulatory requirements, and protect sensitive information, fueling rapid growth in this segment.

REGIONAL ANALYSIS

North America led the Cloud Access Security Broker market in 2023, accounting for approximately 44% of the revenue share. This dominance is largely attributed to the region's early adoption of cloud technologies, along with the presence of numerous large enterprises that require robust data security solutions. North American companies are at the forefront of digital transformation and cloud migration, driving demand for CASBs to ensure secure cloud access, compliance, and protection against evolving cyber threats.

The Asia Pacific region is expected to grow at the fastest compound annual growth rate of 20.34% from 2024 to 2032. This rapid growth is fueled by the region's increasing cloud adoption across emerging markets, coupled with a heightened focus on cybersecurity due to the rise in cyber threats. As businesses in Asia Pacific expand their digital infrastructure, there is a growing need for CASBs to provide secure cloud access, mitigate risks, and comply with local and international data protection regulations, driving substantial market growth.

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KEY PLAYERS

• Skyhigh Networks (Skyhigh CASB, Skyhigh Secure SD-WAN)

• Broadcom Inc. (Broadcom CASB, Symantec Cloud Security)

• Palo Alto Networks Inc. (Prisma Cloud, Cortex XSOAR)

• Cisco Systems, Inc. (Cisco Umbrella, Cisco Cloudlock)

• iboss Cybersecurity (iboss Cloud Security, iboss Zero Trust)

• Netskope (Netskope Security Cloud, Netskope Private Access)

• Lookout (Lookout CASB, Lookout Mobile Endpoint Security)

• Zscaler, Inc. (Zscaler Internet Access, Zscaler Private Access)

• Proofpoint Inc. (Proofpoint CASB, Proofpoint Email Security)

• Microsoft Corporation (Microsoft Defender for Cloud, Microsoft Entra)

• Bitglass, Inc. (Bitglass CASB, Bitglass Data Loss Prevention)

• Censornet (Censornet Cloud Security, Censornet CASB)

• Forcepoint (Forcepoint CASB, Forcepoint Data Loss Prevention)

• McAfee, LLC (McAfee CASB, McAfee Web Protection)

• Fortinet Inc. (FortiCASB, FortiGate Cloud)

• Barracuda Networks Inc. (Barracuda Web Security, Barracuda CloudGen Firewall)

• Trend Micro Inc. (Trend Micro Cloud App Security, Trend Micro Smart Protection)

• IBM Corporation (IBM Cloud Security, IBM Security Identity Governance)

• Thales Group (Thales Cloud Protection, Thales CipherTrust Cloud Key Manager)

• Alert Logic Inc. (Alert Logic Cloud Security, Alert Logic Managed Detection)

• CloudLock LLC (CloudLock CASB, CloudLock Cloud Security)

• OneLogin Inc. (OneLogin CASB, OneLogin Identity Management)

• CloudCodes Software Pvt. Ltd. (CloudCodes CASB, CloudCodes DLP)

• CipherCloud Inc. (CipherCloud CASB, CipherCloud Data Encryption)

• Oracle Corporation (Oracle CASB, Oracle Identity Cloud Service)

RECENT DEVELOPMENTS

• In October 2024, Skyhigh Security expanded its global cloud infrastructure, enhancing performance, security, and compliance across multiple regions. This growth supports its rapid customer adoption and strengthens its Security Service Edge solutions worldwide.

• In August 2024, Broadcom unveiled VMware Tanzu Platform 10 at VMware Explore 2024, offering enhanced cloud-native application delivery and GenAI-powered intelligent app capabilities, accelerating software development for private cloud environments.

• In November 2024, Microsoft enhanced its Security Service Edge solution, introducing updates to Microsoft Entra Private and Internet Access, aimed at simplifying Zero Trust migrations, enhancing threat protection, and improving user access security with new integrations and capabilities.